Correlation Between Benitec Biopharma and Immunitybio

Can any of the company-specific risk be diversified away by investing in both Benitec Biopharma and Immunitybio at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Benitec Biopharma and Immunitybio into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Benitec Biopharma Ltd and Immunitybio, you can compare the effects of market volatilities on Benitec Biopharma and Immunitybio and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Benitec Biopharma with a short position of Immunitybio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benitec Biopharma and Immunitybio.

Diversification Opportunities for Benitec Biopharma and Immunitybio

0.33

Correlation Coefficient

Benitec Biopharma  Immunitybio

Weak diversification

The 3 months correlation between Benitec and Immunitybio is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Benitec Biopharma Ltd and Immunitybio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunitybio and Benitec Biopharma is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Benitec Biopharma Ltd are associated (or correlated) with Immunitybio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunitybio has no effect on the direction of Benitec Biopharma i.e., Benitec Biopharma and Immunitybio go up and down completely randomly.

Pair Corralation between Benitec Biopharma and Immunitybio

Given the investment horizon of 90 days Benitec Biopharma Ltd is expected to generate 1.1 times more return on investment than Immunitybio. However, Benitec Biopharma is 1.1 times more volatile than Immunitybio. It trades about -0.03 of its potential returns per unit of risk. Immunitybio is currently generating about -0.04 per unit of risk. If you would invest  1,370  in Benitec Biopharma Ltd on September 14, 2025 and sell it today you would lose (172.00) from holding Benitec Biopharma Ltd or give up 12.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Benitec Biopharma Ltd  vs.  Immunitybio

Benitec Biopharma

Risk-Adjusted Performance

Weakest

Over the last 90 days Benitec Biopharma Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Immunitybio

Risk-Adjusted Performance

Weakest

Over the last 90 days Immunitybio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Benitec Biopharma and Immunitybio

The main advantage of trading using opposite Benitec Biopharma and Immunitybio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benitec Biopharma position performs unexpectedly, Immunitybio can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Immunitybio will offset losses from the drop in Immunitybio's long position.

The idea behind Benitec Biopharma Ltd and Immunitybio pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.